Agenda item

The Audit Manager presented a report to provide Members of the Governance and Audit Committee with a position statement on internal audit recommendations made, implemented and outstanding. It was noted the recommendations are made at the conclusion of each audit review to identify improvements to be made to mitigate risk and strengthen controls. These recommendations are then included in the final audit reports and recipients are asked to provide a management response to indicate whether they agree with the recommendation, how they plan to implement them and target dates. Those priorities are organised as high, medium or low priority.

Members were directed to Table 1 of the report that highlighted the different priority ratings which are used and the recommendation categorisation. Once the target date for implementation has been reached the relevant Officers are contacted and asked to provide feedback on the status of each agreed recommendation. The implementation of these recommendations is monitored using MK Insight internal audit software to ensure that improvements are being made.

As this was the first recommendation monitoring report brought to the Committee, the report at Appendix A provides Members with a summary of the status, at as 18th November 2022, of all recommendations made by Internal Audit since the implementation of the MK Insight internal audit software on 1st April 2021. Moving forward it is suggested that only outstanding recommendations from previous years be included together with the recommendations made in the current year.

The Audit Manager noted that a total of 142 recommendations were made to improve the control environment of the areas reviewed during 2021/22 and to date 35 have been made in 2022/23. There was 1 recommendation made during 2021/22 which was not accepted by the service area as Management considered that they complied with the recommendation around staff signing their timesheets in most instances but there were occasions when it was not possible to comply due to staff being absent; therefore, Management did not consider it was appropriate to remind staff of this requirement.

The Audit Manager advised Members that as of 18th November 2022, 127 recommendations made in 2021/22 have been implemented, while 14 have target dates in the future. There were no overdue recommendations to report to date in respect of 2021/22.

Of the 35 recommendations made to date in 2022/23, Appendix A illustrates that 24 have been implemented, and 11 have a future target date. All have been accepted by Management. The information contained in Appendix A has been compiled from the internal audit software system. Views from the Committee are sought in respect of the content and details provided. Similar reports have been presented to the other 3 Governance and Audit Committees that comprise the Regional Service footprint and once feedback from all is obtained a standard report will be commissioned.

The Governance and Audit Committee RESOLVED to:

-       Consider the information provided in respect of the status of internal

           audit recommendations made.

-       Review the information contained within the report and provide feedback on the content and format of the information provided.